In the making: fast clearances at all ports

0
7

The government is working to streamline approvals to ensure that goods for export and import are cleared within an hour of arriving at seaports and airports to help catapult India’s share of global trade to 10% by 2047.

The ‘customs ONE’ plan prepared by the trade department is part of the [email protected] blueprint, a vision to make the country one of the three largest economies in the world and achieve developed nation status by the 100th year of its independence.

According to customs records, it currently takes between 24 and 48 hours for air freight to clear and up to 72 hours for ocean freight.

The government also plans to establish economic zones outside India as an extension of the Aatmanirbhar Bharat initiative, according to a Commerce Ministry presentation reviewed by TBEN.

As part of the plan, the government has decided to project 100 Indian brands as global champions, aiming to make India the top three global services trade in tourism, IT services, business services, healthcare and education by 2047. Under the vision plan, it is also working to achieve leadership positions at the World Trade Organization (WTO) with the help of FTA partner countries. India has signed trade agreements with the UAE and Australia so far this year and is likely to sign at least two more agreements by the end of the year – with the UK and Canada.

ALSO READ  PFI's verified Karnataka Twitter account continues to spew venom despite main lever disabled

“We aim to position India as a supplier of high-quality and fast-growing products… alongside faster shipment clearance to act as a facilitator to drive trade flow. Therefore, Customs ONE will assist in providing import and export clearance within one hour of arrival at entry points or customs ports,” said a government official, requesting anonymity. India accounted for 1.6% of global exports and 2.1% of global imports in 2020. to the World Trade Statistical Review 2021.

ALSO READ  Major AAP faux pas in Gujarat: Arvind Kejriwal's rickshaw wala is actually BJP's rickshaw wala

Biswajit Dhar, a professor at Jawaharlal Nehru University, said reducing the time required for customs clearance is a long-felt necessity and essential for lowering operating costs. “Now that the government has decided to address this issue, it needs to establish a time frame within which the time required for customs clearance will be reduced,” he said. Dhar added that trade hubs such as Singapore and Hong Kong immediately carry out customs clearance. “If we can reduce customs clearance to a few hours instead of days, as is the case now, we should see this as a ‘remarkable’ progress,” he added.

According to customs, an internal case study from the Jawaharlal Nehru Customs House, Mumbai, showed that the average release time of imports has been declining steadily since 2017.

It decreased from 181.34 hours in 2017 to 144.18 hours in 2018, 105.4 hours in 2019 to 91.65 hours in 2020. The fastest import documents were cleared in 14 minutes in 2019 and 6 minutes in 2020, it turns out from the investigation.

ALSO READ  'Just what Congress needs for a revival'

Ajay Sahai, director-general and chief executive of the Federation of Indian Export Organizations (FIEO), said that trading hubs such as Singapore and Dubai are currently offering rapid approval based on risk profile and in some cases it is an hour, even though it is average can be high. “Indian customs are moving towards global standard facilitation standards and therefore customs clearance within an hour should be on the agenda,” Sahai added.

Questions emailed to the Ministry of Trade and Industry on Wednesday went unanswered until press time.

With a view to faster customs clearance, Customs has introduced the single window interface for facilitation of trade (SWIFT); direct port delivery and direct port access facilities, a system that allows a select group of importers to clear goods directly from the port within 48 hours of arrival.

Check out all the political news and updates on Live TBEN. Download the TBEN News app for daily market updates and live business news.

More or less

Subscribe to TBEN Newsletters

* Please enter a valid email address

* Thank you for subscribing to our newsletter.

Post your comment